-6- in the litigation. Coastal Petroleum Refiners, Inc. v. Commissioner, 94 T.C. 685, 688-690 (1990). Respondent’s position in a judicial proceeding is that which is set forth in respondent’s answer to the petition. Sec. 7430(c)(7)(A); see Huffman v. Commissioner, 978 F.2d 1139, 1147- 1148 (9th Cir. 1992), affg. in part and revg. in part T.C. Memo. 1991-144; Maggie Mgmt. Co. v. Commissioner, supra at 442. Respondent concedes that petitioner substantially prevailed with respect to the amount in controversy and exhausted all administrative remedies. Respondent argues, however, that respondent’s position was substantially justified and that therefore petitioner does not qualify as a prevailing party for purposes of section 7430. Relying on an unpublished opinion, McKee v. Commissioner, 209 Fed. Appx. 691 (9th Cir. 2006) (holding that respondent’s position was not substantially justified where respondent admitted that key errors were made in calculating the taxpayer’s deficiency), revg. T.C. Memo. 2004-115, petitioner argues that respondent’s position was not substantially justified. We conclude that on the record before us respondent was substantially justified in asserting in his answer that petitioner’s claimed deductions were not substantiated. A number of individuals in addition to petitioner were referenced on checks and other documentation that were provided to respondent.Page: Previous 1 2 3 4 5 6 7 NextLast modified: November 10, 2007